Wisevoter
World

Cotton Futures Climb on Weak Dollar, Indian Output Cut

ICE December 2026 cotton settled 1.39 per cent higher at 78.11 cents per pound after touching its highest level since October 26.

Updated on Nov. 5, 2026 in Stock Markets

Flat-color vector editorial illustration of stacked white cotton bales beside a plain shipping container on a pale field, evoking commodity trade pricing.
Cotton futures rose 1.39 per cent to 78.11 cents per pound on Wednesday as a weaker US dollar and cut Indian output estimates lifted prices. AI Illustration. Upload story photo >

The most active ICE December 2026 cotton contract settled 107 points higher at 78.11 cents per pound, recovering 126 points from Tuesday's low of 76.85 cents. The gain came as the US dollar index fell to its lowest level in more than a month.

Why it matters

A weaker dollar makes dollar-denominated US cotton cheaper for overseas buyers, while reduced Indian output estimates offer some support to global prices. Rising certified stocks and a harvest that is 63 per cent complete could limit further gains.

ICE certified cotton stocks rose to 65,678 bales as of November 3, an increase of 38,700 bales in a single session, while 63 per cent of the US crop was harvested as of November 1. The Cotton Association of India projected 2026-27 production at 28 million bales, a 14 per cent decline from the prior season's 32.569 million bales.

The details

Technical buying from oversold levels supported prices after cotton futures had fallen to their lowest level since October 8 on Tuesday. The contract reached its highest level since October 26 during early trading.

Timeline

  1. October 8: Cotton futures fell to their lowest level since this date.

  2. October 26: The contract reached its highest level in early trading.

  3. November 1: The USDA reported 63 per cent of the US cotton crop harvested.

  4. November 3: ICE certified cotton stocks reached 65,678 bales.

  5. November 4: Cotton futures touched a low of 76.85 cents before recovering.

Market Dynamics

The Cotton Association of India's projection of 28 million bales for 2026-27 marks a 14 per cent decline from the previous season's 32.569 million bales. That reduction is now being weighed against a stronger harvest pace and rising US certified stocks in global cotton pricing.

Investors holding cotton-linked equities or commodity exposure should note that a weaker dollar and rising certified stocks are pulling prices in opposite directions. Price movements may track both currency shifts and harvest-pace data over the coming weeks.

The takeaway

Cotton prices are being driven by currency moves, harvest progress and production forecasts at the same time. Watching certified stock levels alongside dollar trends can help clarify where prices may head next.

Further reading

Track more commodity and equity moves in the Stock Markets section.

Source note: This article includes information reported by Fibre2fashion.